How the economy is impacting higher education

We learned earlier this week that the University of Washington lost at least $7.5 million to a faltering securities-lending program — a small but unnerving loss for a university with billions in the bank.

But how’s the rest of higher education holding up to the country’s reeling economic climate?

The Chronicle of Higher Education wrote about that topic in its Friday edition, boiling it down to two key points: Many smaller schools are hurting, but wealthy institutions actually stand to profit from the financial crisis.

The Chronicle reported:

Well-off private universities with large endowments — and public universities in energy-rich states with strong balance sheets — are on the plus side. They will weather the financial turmoil and may even improve their standing, poaching faculty members from universities that are struggling and using their stability to attract donors who do have money to give. But small, less-selective private institutions that are dependent on tuition, as well as public universities in states where the financial outlook is already grim, can expect to suffer. Some may even be forced to shut their doors.

Some public universities are saying they might increase tuition to make up for revenue shortfalls. And officials at schools around the country told the Chronicle that they’re thinking of offering more weekend and evening classes to “maximize campus efficiency.” Students might also be seeing a higher percentage of adjunct faculty teaching classes as universities look for ways to cut costs and increase flexibility.

Academic programs aren’t the only areas where changes might happen. The New York Times reported Thursday that fuel costs are hitting college athletic programs where it really hurts: their budgets.